Council tax rises and cuts to services will still be needed despite a “record” funding deal, a local government organisation has warned.

Announcing her draft budget plans, the Scottish Government finance secretary said there was “no reason” for big council tax increases next year.

She told MSPs that councils would get more than an extra £1bn in 2025/26, taking their funding to over £15bn.

Ms Robison: “While it will be for councils to make their own decisions with record funding, there is no reason for big increases in council tax next year.”

But Jonathan Carr-West, chief executive of the Local Government Information Unit (LGIU) Scotland, said the budget plans don’t “engage with the scale” of the challenge facing councils.

He added: “The Scottish Government has responded to the concerns of councils and has removed the freeze on council tax rises, but the cabinet secretary’s expectation that record funding levels should mean councils do not need to put up council tax is too complacent.

“The truth is that even with the additional funding announced today, local authorities will still need to raise council tax and make cuts to services and will still edge closer to being unable to balance their books.”

Glasgow Labour leader George Redmond said the budget announcement failed “to address the core issues Glasgow faces, particularly with local government funding”.

He said it did “not provide adequate resources to protect core services”. “Glasgow’s schools are facing significant challenges, including increasing pressures on our teachers, and social care is at breaking point, with rising demand and shrinking budgets.

“Local councils have been left to manage these crises with fewer resources, while the budget does nothing to reverse the damage caused by years of SNP cuts.”

The Scottish Government’s announcement stated a “record £15bn for local government” would “support the services communities rely on”.

Ms Robison said that included £289m to “give real-terms protection to the general revenue grant”. Her budget also provides funding for agreed pay increases to staff such as teachers, social care workers and bin collectors.

Mr Carr-West said his organisation, which supports councils, carried out an annual survey that shows local government finances in Scotland are “hanging by a thread”.

He added: “Local government may welcome commitments to the New Deal with Local Government continuing work on a fiscal framework and plans to deliver new revenue raising powers.

“However, they will be dismayed to see how much funding continues to be ring-fenced.

“There is an increase in core funding in today’s budget but it doesn’t cover the ever growing costs of core statutory services.”

Glasgow’s SNP council group have been approached for comment.